Which one of the following describes the amount by which government spending exceeds government revenues?
A) Balance of trade
B) Budget deficit
C) Gross domestic product
D) Output gap

Question

Quizplus · Accepted Answer

A budget deficit occurs when government spending exceeds government revenues, resulting in a shortfall of funds that must be borrowed or printed to cover the difference. The other options are unrelated to this concept - the balance of trade refers to a country's imports and exports, GDP measures the value of goods and services produced within a country's borders, and the output gap is the difference between actual and potential economic output.

Which One of the Following Describes the Amount by Which